IVZ “rig-up” is underway at 1.2 Tcf drill target - spud weeks away

Our oil and gas Investment Invictus Energy (ASX: IVZ) just started rig-up operations at its Musuma-1 well site.

Well services equipment and crews are being mobilised in parallel, ahead of final rig acceptance by IVZ.

IVZ says the well "remains on track to spud in the coming weeks during November 2026".

So this month…

The exact spud date is dependent on the remaining critical well services equipment arriving into Zimbabwe.

Here is a look at the Rig 202 mast assembly included today:

(source)

For a look at what happens next, three years ago we had cut this up from an IVZ post at the time ahead of prior drilling (if it looks similar, that’s because it is actually the same drill rig):

(source)

Musuma-1 is targeting a prospective resource of 1.2 Tcf gas and 73M barrels of condensate (gross, mean unrisked).

It will be IVZ's first drilling event since the Mukuyu gas-condensate discovery back in 2022/2023.

The rig has been moved across from the Mukuyu-2 wellsite.

Today IVZ also included an aerial view of the site coming together:

(source)

This comes just days after IVZ's Petroleum Production Sharing Agreement with Zimbabwe was gazetted, which we covered here.

IVZ confirmed today that it expects to be drilling in “in the coming weeks during November 2026” (source).

So from today’s photos above, it sure doesn’t look too far away now.

Musuma-1 sits near the eastern boundary of IVZ’s project (part of the “central fairway”) inside the ~5.5BN barrel equivalent prospective resource.

(source)

As we mentioned above, this will be the first well IVZ will drill since making its Mukuyu discovery across two wells in 2022/2023.

(Which was actually labelled the second-largest discovery in Sub-Saharan Africa for 2023)

The first three companies in the image below are $409BN capped Shell, $281BN capped Total and then our little old IVZ:

Source: IVZ Secures Gas Sample From Major Discovery (March 2024)

The difference with this year’s well is it will be a lot shallower - ~1,500m target depth versus ~3,360m depth for the 2022-2023 wells.

AND it should be a lot less technically complex because IVZ now has a “working hydrocarbon system” and a lot of data from the Mukuyu discovery.

IVZ’s last two wells were the first ever wells put into this project.

So this time around, IVZ should have a far better grip on where/what it is drilling.

We also hope it means this round of drilling can be done for a lot cheaper than the last two wells IVZ drilled too.

IVZ’s MD Scott Macmillan said in a webinar recently the well should cost ~US$6-10M. (source)

IVZ had ~$8M cash in the bank at September 30.

We think that once the market has clarity on how IVZ will pay for the well - that’s when IVZ’s share price can start trading free of any “cap raise weight”.

Especially with everything happening in oil markets right now.

We wrote about why we think oil prices could run from here in our Quick Take last week here.

(source - Our Oct 15 QuickTake)

Even with oil prices having dropped during the week on reported peace talks, it does feel like things could change quickly back.

(source)

So things could escalate at any time especially as it has been over 8 months of disruptions to the main oil supply channels.

We have seen things flip and flop on supposed peace talks repeatedly before.

What’s next for IVZ?

🔄 IVZ’s next well (Musuma-1)

It's now a countdown to IVZ’s next well - the 1.2 Tcf gas + 73M barrel condensate target (unrisked, prospective resource).

IVZ has confirmed drilling will begin this month. (source)

Here are the milestones we will be tracking:

1. 🔄 Rig mobilisation to site
2. 🔲 Confirmation of funding for the well
3. 🔲 Drilling starts
4. 🔲 Drilling updates
5. 🔲 Drilling results